3AC Called Out by Authorities of Singapore For Giving Incorrect Info

07/01/2022

2 minutes read

2022.07.01 01:36

Trouble keeps following Three Arrows Capital (3AC), as yesterday the British Virgin Islands court ordered liquidation of the crypto hedge fund. Now it’s a double-trouble situation with the Monetary Authority of Singapore (MAS) reprimanding the struggling 3AC for providing incorrect information.

Singapore’s central bank and financial regulator called out troubled crypto hedge fund Three Arrows Capital, also known as 3AC or TAC, for “providing false information,” as the firm sinks deeper into crisis amid a cryptocurrency rout.https://t.co/5UyHhw2OkJ

— Nikkei Asia (@NikkeiAsia) June 30, 2022

Exceeded Threshold Wasn’t Left Unnoticed

Between July and September of 2020, Three Arrows Capital operated in the area with assets over $250 million, which is not allowed according to the local legislation. In addition, the threshold was exceeded twice, second time being between the end of 2020 all the way up to August 2021.

Other breaches include failing to inform the MAS about changing roles of shareholders and directors. Furthermore, the document published by the Monetary Authority of Singapore (MAS) also states that there’s going to be an ongoing investigation for other breaches during the time of registered operation, as Three Arrows Capital has been dissolved yesterday.

Trouble on Both Sides for 3AC Crypto

Lies on top of lies brought nothing but trouble for Three Arrows Capital (3AC), as the Singaporean authorities have found out that 3AC as they switched the fund to a different location in 2021, explaining it’s an unrelated offshore entity. But that wasn’t the case, as the British Virgin Islands fund had Su Zhu as a shareholder, who is also the co-founder of 3AC, thus hinting at an attempt to conceal this information.

3AC is among the most evident casualties of this harsh crypto winter. Apparently, the company has lost an eye-watering $200 million in relation to Terra (Luna) and its stablecoin Terra (UST) crashing into pieces. Moreover, many crypto exchanges have recently liquidated 3AC positions after the troubled company failed to meet the margins.

As if that wasn’t enough, Voyager Digital yesterday issued a notice of default. Ultimately, 3AC owes Voyager Digital $675 million, which will probably have to be dealt with through Singapore-based Teneo Restructuring, which handles the Three Arrows liquidation process.

BREAKING: Crypto brokerage Voyager Digital has issued a notice of default to Three Arrows Capital (3AC) after the hedge fund failed to make the required payments on its loans of 15,250 #bitcoin and $350 million in USDC.Voyager’s stock is now down -99.9%

— CryptoWhale (@CryptoWhale) June 27, 2022